Part 5: WAREHOUSE RECEIPTS AND BILLS OF LADING: NEGOTIATION AND TRANSFER
§7-1503. Document of title to goods defeated in certain cases
(CONTAINS TEXT WITH VARYING EFFECTIVE DATES)
(WHOLE SECTION TEXT EFFECTIVE 2/15/10)
(1). A document of title confers no right in goods against a person that before issuance of the document had a legal interest or
a perfected security interest in the goods and that did not:
(a). Deliver or entrust the goods or any document of title covering the goods to the bailor or the bailor's nominee with:
(i) Actual or apparent authority to ship, store or sell;
(ii) Power to obtain delivery under section 7-1403; or
(iii) Power of disposition under section 2-403; section 2-1304, subsection (2); section 2-1305, subsection (2); section 9-1320;
or section 9-1321, subsection (3) or other statute or rule of law; or [2009, c. 324, Pt. A, §2 (NEW); 2009, c. 324, Pt. A, §4 (AFF).]
(b). Acquiesce in the procurement by the bailor or its nominee of any document. [2009, c. 324, Pt. A, §2 (NEW); 2009, c. 324, Pt. A, §4 (AFF).]
[
2009, c. 324, Pt. A, §2 (NEW);
2009, c. 324, Pt. A, §4 (AFF)
.]
(2). Title to goods based upon an unaccepted delivery order is subject to the rights of any person to which a negotiable warehouse
receipt or bill of lading covering the goods has been duly negotiated. That title may be defeated under section 7-1504 to
the same extent as the rights of the issuer or a transferee from the issuer.
[
2009, c. 324, Pt. A, §2 (NEW);
2009, c. 324, Pt. A, §4 (AFF)
.]
(3). Title to goods based upon a bill of lading issued to a freight forwarder is subject to the rights of any person to which a
bill issued by the freight forwarder is duly negotiated. However, delivery by the carrier in accordance with Part 4 pursuant
to its own bill of lading discharges the carrier's obligation to deliver.
[
2009, c. 324, Pt. A, §2 (NEW);
2009, c. 324, Pt. A, §4 (AFF)
.]
SECTION HISTORY
2009, c. 324, Pt. A, §2 (NEW).
2009, c. 324, Pt. A, §4 (AFF).
Data for this page extracted on 12/15/2009 09:09:50.